National Republican., 1887-01-15

ing qualtiesy And II the state, or II Con-
gress, impairs the value of this property,
Why should not compensation be made to
the owners, and, before putting into opera
ton law that will affect values, ought
not compensation to be made as is done
when the government exercises its right Of
eminent domain and condemns the prop
erty Of A that the road may be built which
the company pays forg BY reduction OF
income-producing qualities the value of the
very right of way which the railroad com.
pany has paid for is affected.
The geography and topography of the
country make competition certainty. This
bill denies to the railroad the right to
charge less for the greater distance than for
the shorter. l do not suppose that any
railroad company ever carried freight or
passengers for the longer distance for less
than for the shorter unless competition, or
some other circumstance beyond the con.
troll OF the,company, compelled. The only
alternative would be to yield the business.
II is principle IN good railroading to re.
ject no business that offers If 1t can possibly
be done, SO long as 1t will pay the addi-
tional expense consequent upon its own
movement. very large portion Of the
traffic of the country is done below the
average cost. The fixed expenses and the
semi.tixed expenses Of a railroad company
are very large. They, as well as the operat-
ing expenses, are included to make the
average cost OF movement.
The average of operating expenses per
ton is avery different figure from thai of
the average cost per ton, the latter includ-
ing operating expenses, fixed expenses, and
semi'ilxed expenses. Thus, take the busi-
ness from the Atlantic to the Pacific. or
from the Pacific to the Atlantic, and we find
competition by the lsthmus of Panama and
competition by Cape Horn; we find over.
land routes of different length, of different
grades and curves, varying In volume of
business and In expenses OF operating. We
have very different average expense for
movement. The longer road must com.
pete with the shorter The road with the
heaviest gradients must compete with the
road of easier. The road having small
volume of business must compete with the
road having large volume of business.
The cost of fuel is very important item,
varying on the different railroads. Yet the
road having the lesser volume Of business,
the road having the longest line, having the
the heaviest grades and curves, having the
higher cost OF fuel, will be In competition
with and will have to carry as cheap us one
having the shorter line, the easiest grad
tents, the cheapest fuel, aud the largest vol
ume OF business.
All these are factors that determine the
business, however meager the profits. All
the overland lines of railroad find their
rates very largely controlled or influenced
by the routes by way of the lsthmus of
Panama and of Cape Horn; meeting that
competition, and being willing to accept
small profit where larger cannot be had,
they carry along the line between the two
extreme points the same character of freight
at less rate than 1t is carried from east to
"a4GI fRAU. 60. s..F. lG.s..
places. Thus, because of competition,
freight going from New York to San Fran
cisco may pass over the various lines of
road making up II through line for, perhaps,
nan thelr regular rates, say from New York
10 Buffalo, from Buffalo To Chicago, from
Chicago TO Omaha, from Omaha to Salt
Lake, aud SO on to destination on the
Pacific coast. No profit Is so small as TO
he despised. Business Is done at that rate
rather than not do II all.
Take more marked illustration. The
Southern Pacific road strikes the Atlantic
waters at much less distance than any of
its more northern competitors. 1t has a
line OF easy gradients comparatively, and
1t completes not only with its northern
rivals, but more particularly with the Cape
Horn lsthmus of Panama routes because of
its shorter line and easy gradients. In this
competition IL often takes freight between
the two oceans as low as $40, while 1t takes
freight half way for, say, $50 ton, most
reasonable rate for the limited local bust
ness of that country. Now, If 1t makes
only dollar net on the freight from San
Francisco TO New Orleans at $40, II is glad
to make that dollar where 1t can get no
more; but a ton of freight going TO III Paso,
something over half the distance, will pay
$50 ton. Now, If the freight at $40 TO
New Orleans pays 81 profit, the freight
going less distance, TO El Paso, would
pay Nv much profit Us twenty-ons tons
going through 70 Now Orleansi and the